Common Insurance Claims Filed by Coil Tubing Companies And How to Prevent Them

Nate Jones, CPCU, ARM, CLCS, AU
4 days ago
2 min read

Coil tubing operations in the oil and gas industry involve complex, high-risk work. Crews handle heavy machinery, high-pressure tubing, and specialized equipment in remote and sometimes hazardous locations. These factors make coil tubing companies susceptible to various insurance claims. Understanding common claims and implementing preventative measures can protect your business, reduce downtime, and lower insurance costs.

1. Equipment Damage Claims

Damage to specialized equipment is one of the most frequent claims for coil tubing companies. This includes coiled tubing units, hydraulic systems, and rig-up machinery. Damage can occur due to:

Mechanical failure during high-pressure operations
Accidents while transporting or rigging up equipment
Harsh environmental conditions such as extreme weather

Prevention Tips:

Perform routine inspections and preventive maintenance
Train crews on proper handling procedures
Ensure secure transportation and storage of all tools

Investing in specialized equipment coverage protects your company from costly repairs or replacements and ensures continuous operations.

2. General Liability Claims

General liability claims often arise from third-party injuries or property damage. Examples include:

Accidental damage to client property during rig-up operations
Injuries to visitors or contractors on-site
Accidents caused by falling or improperly secured equipment

Prevention Tips:

Conduct site-specific risk assessments
Train employees in safety protocols and emergency response
Maintain clear signage and safety barriers

A robust general liability policy can help cover legal fees, settlements, and medical expenses associated with such claims.

3. Environmental and Pollution Claims

Environmental incidents are a significant risk in coil tubing operations. Pollution liability claims may result from:

Oil, chemical, or fluid spills
Soil, water, or air contamination
Regulatory fines or cleanup costs

Prevention Tips:

Implement spill prevention measures and containment systems
Train staff on proper handling of hazardous materials
Stay up-to-date with EPA and OSHA regulations

4. Workers’ Compensation Claims

Workplace injuries are common due to the physically demanding nature of coil tubing operations. Common claims include:

Falls or slips on rigs and uneven terrain
Injuries caused by heavy equipment or tubing operations
Exposure to hazardous materials

Prevention Tips:

Provide PPE and enforce its use
Conduct regular safety drills and training programs
Implement strict compliance with OSHA safety standards

Why Choose Wexford Insurance

At Wexford Insurance, we help coil tubing companies protect their workforce and assets. Our team specializes in oil and gas insurance and provides: